Marconi confirms bid talks

Marconi has confirmed it is holding talks with rivals over the possible sale of the telecoms equipment maker.

Shares in the UK firm raced ahead this morning up 44.75p (17 per cent) at 311.75p.

In a statement issued to the London Stock Exchange Marconi said: "Marconi Corporation plc is continuing to pursue all strategic options with the objective of maximising shareholder value.

"These options include, amongst a range of alternatives, discussions with third parties about potential business combinations.

"The discussions are at a preliminary stage and there can be no assurance that an offer will ultimately take place."

The statement was issued in response to a report in The Sunday Times which said Marconi had begun talks with Chinese telecoms equipment maker Huawei Technologies in a deal valuing the company at more than £600m.

Last week Marconi announced increased losses as it looks to cover restructuring costs after failing to secure a slice of a major £10bn contract to supply gear for BT's next-generation 21st Century Network (21CN) project.

Huawei, incidentally, was one of eight foreign firms selected as suppliers by BT. ®